Although returns on home remodeling decreased from 2006 to 2007, the decline has slowed, according to Remodeling magazine’s 2007 Cost vs. Value Report. Remodeling is still a good investment, with two-thirds of the 29 upscale and midrange projects evaluated by the study returning 65 percent to 80 percent at resale. That means homeowners are paying 20 cents to 35 cents on the dollar for more and better space in their homes.

Five of the six projects that earned cost-recovery rates of more than 80 percent were exterior improvements. The sixth was a minor kitchen remodel. At the other end of the scale, home-office remodels, the installation of a backup power generator and a sunroom addition brought the lowest returns.